B737-700 FLT CREW REPORTS GPWS WARNING 10 NM SOUTH OF RNO ON THE LOC RWY 34 AT 9000 FEET. WARNING IS MOMENTARY AND FLT CREW CONTINUES FOR LANDING.

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APCH CTL FREQ WAS BUSY AND RESULTED IN US BEING HIGH FOR THE APCH. I NOTIFIED APCH AT APPROX 10 MI OUT THAT THIS APCH (VISUAL TO RWY 34L) WOULD NOT BE SUCCESSFUL. THEY CLRED US TO DO A 360 DEG TO THE R. THIS SEEMED PRUDENT WITH THE TERRAIN DISPLAY AND WHERE WE WERE ON THE APCH CHART. THE TURN WOULD BE ON THE PROC TURN SIDE OF THE LOC. THE FO MADE A NICE; TIGHT 360 DEG TURN UTILIZING THE AUTOPLT IN HDG MODE TO MAKE THE TURN. THE TURN WAS WORKING OUT WELL AND WAS GOING TO BRING US RIGHT BACK ON THE LOC. I MONITORED THE NAV DISPLAY. THE ACFT STARTED TO ROLL OUT OF THE TURN ABOUT 40 DEGS PRIOR TO THE LOC ALIGNMENT. THE FO IMMEDIATELY RECOGNIZED THIS AND SLEWED THE HDG BUG AROUND TO THE FINAL APCH COURSE. SUDDENLY WE RECEIVED A SINGLE 'TERRAIN; TERRAIN PULL UP' WARNING. THE FO STARTED TO ADVANCE THE THRUST LEVERS; PERHAPS AS MUCH IN RESPONSE TO THE AIRSPD/CONFIGN THAT THE ACFT WAS IN. THE WARNING HAD STOPPED AND THE FO ASKED IF I WANTED TO DO A GAR; ALL OF THE WARNING INDICATIONS WERE NO LONGER PRESENT; SO I TOLD HIM TO CONTINUE THE APCH; WHICH WAS SUCCESSFUL. WE HAD A WARNING FOR 2-3 SECONDS AND HAD NOT FULLY REACTED (TERRAIN AVOIDANCE MANEUVER) TO IT AND ASSESSED THAT IT WAS NO LONGER NECESSARY. I BELIEVE THAT THE EGPWS RECOGNIZED THE THREAT AS THE ACFT STARTED TO ROLL OUT OF THE TURN EARLY. HOWEVER; IN HINDSIGHT I QUESTION WHETHER I SHOULD HAVE BEEN MORE AGGRESSIVE AND DIRECTED THE MANEUVER OR TAKEN THE ACFT AND PERFORMED IT MYSELF. I TEACH AND REVIEW THIS MANEUVER FREQUENTLY AND HAVE NO PROB DOING OR DIRECTING A GAR/MISSED APCH. PERHAPS THIS TYPE OF SCENARIO SHOULD BE EXPERIENCED BY EVERYONE IN THE SIMULATOR.